The Thirty-fifth Annual Meeting of the Board of Governors of the African Development Bank and The Twenty-sixth Annual Meeting of the Board of Governors of the African Development Fund

The Thirty-fifth Annual Meeting of the Board of Governors of the African Development Bank and The Twenty-sixth Annual Meeting of the Board of Governors of the African Development Fund

Norwegian Intervention by Mr. Leiv Lunde
State Secretary for International Development and Human Rights
Governor Cairo 26 May 1999

Mr. President,
Mr. Chairman,
Distinguished Governors,
Ladies and gentlemen,

I would like to start by expressing my appreciation to the Government of Egypt for its hospitality in hosting the annual meetings of the African Development Bank here in Cairo.

As we approach the end of the decade we have cause to be both pessimistic and optimistic about Africa’s development. In the past year serious conflicts have erupted on the continent, throwing millions of people into even deeper poverty and despair. Nevertheless, the will for peace and democracy is still alive. We see a new dynamism in many African countries – there is increased political openness and civil society and the private sector are playing a greater and more positive role in development.

Debt relief is sorely needed and holds promise as a catalytic factor in the strengthening of the economies of heavily indebted countries. This is why the Norwegian Government last year launched a comprehensive debt strategy, which includes bilateral debt relief and measures for strengthening international mechanisms for debt reduction, like the HIPC initiative. Our strategy includes a firm commitment to support the ADB's efforts pertaining to debt relief. An increasing number of countries are committed to debt relief, and provided that the words of the G7 and other countries are followed by action, we believe that this could contribute to a significant improvement for heavily indebted countries that adhere to sound economic policies.

Mr. Chairman,

During the last few years, it has become increasingly clear that sustainable development depends on a complex set of interrelated factors. Macroeconomic and financial issues cannot be considered separately from structural and social issues –as the representative from the US just said. The Asian crisis provides ample evidence of this. To meet the challenges successfully and in a holistic manner it is necessary to identify the roles and responsibilities of the different actors on the development scene. The principles outlined in the “Comprehensive Development Framework” – national ownership and commitment, stakeholder participation and donor coordination – should set the norm. The regional development banks are influential partners in their respective regions, and we feel confident that the Bank will use its experience and influence to move this very important cooperative endeavour forward. This also includes, where relevant, active coordination with UN organisations and UN coordination efforts such as UNDAF.

Mr. Chairman,

Under the able leadership of Dr. Kabbaj, the Bank has undertaken a successful reform process. This has not only raised the institution's professional standards, but has also identified the Bank’s specific role in development assistance by developing a more long-term vision for its operations.

Norway has participated actively in the process of developing the Bank’s new vision. The point of departure for this is the African character of the Bank and the situation of its regional member countries. We support the principle that poverty reduction must continue to be the overriding objective of the Bank's operations. We agree to focus on selected key policy areas: the agricultural, social and private sectors at country level, economic integration at regional level and environment, gender and good governance as cross-cutting issues.

However, fine words and good intentions are not enough if we fail to put our policies into practice. In order to make a difference it is necessary to keep a sharp focus on areas where the African Development Bank can take the lead. On the other hand, it is of course important to prioritise and to do so in areas where others are better placed to take the driver's seat. The Bank must also make sure that adequate financial and operational tools are available and that the ambitious policies are actually implemented. To ensure the quality of policy formulation and implementation, the Bank’s goal is to become a “knowledge institution” – an idea fully we support. A knowledge institution is also a learning institution, and the most valuable capital of the Bank is its human resources. To improve its knowledge base it is important for any organisation to continually evaluate and monitor its activities. It is equally important to stimulate horizontal interaction and networking, crossing organisational and professional structures, to ensure a dynamic and holistic approach.

Within the framework of the vision, Norway will continue to support the Bank’s work. Before concluding I would like to highlight some of the policy areas to which Norway wishes to pay special attention.

• Good governance is essential to create a sound and enabling environment for development. We welcome the high priority given to the development of policies to promote good governance in the Bank's operations. We encourage cooperation with other development actors, while we believe that the Bank should be a leading institution in promoting good governance in Africa. To complete this task, the Bank needs to develop not only a policy document, but also an action plan. It is furthermore necessary to build up the Bank’s own institutional capacity for analysing, assessing and addressing governance issues. The Country Performance Assessment System will be an important tool in this process.

I would specifically like to mention that in order to promote good governance we have to recognise the evil of corruption, which threatens to undermine any development efforts. Corruption needs to be attacked from many angles. First of all the Bank must ensure that none of the activities it finances are hampered by corruption. Greater transparency and accountability in the public sector must also be supported, not least as a means of stimulating private investment.

• Good governance is also contingent on equal rights to participation. The involvement of civil society and the private sector is essential to a country’s development and to the state’s efficiency in providing services for its people.
• Recognition of the important role of women in development and the need to enhance their social and legal status has consequences beyond support for activities where women are a target group. To make a real difference, gender dynamics and perspectives have to be incorporated and understood in all operational contexts. Too little effort has been made to mainstream gender perspectives in all Bank operations. Norway therefore welcomes the initiatives taken to revitalise this work and to formulate new policies. To meet these challenges, the Bank’s management must ensure that its institutional capacity is strengthened and that policy formulation is followed up by action plans.

Thank you Mr. Chairman.